As California considers more policies to reduce greenhouse gas emissions, green energy projects like solar become critical to the adoption of these policies. Changes to the Low Carbon Fuel Standard (LCFS) for California does more than just offset your power bills. It lets you earn additional revenue through the sale of the renewable attributes of your solar by virtue of a Renewable Energy Certificates (REC). 

California allows solar energy generated on its grid to be “minted” as a REC, then sold to entities needing to purchase green energy for LCFS compliance. Compliance requirements for LCFSs will grow more rigorous each year (see chart), as the state permits less conventional fuel consumption and demands more low-carbon fuel consumption. Working with Coldwell Energy’s energy experts means we’ll register your system, then broker the credits to parties in need of the credits. 

What’s the length of the LCFS Program? 

The LCFS program targets specific compliance levels by 2030 (see chart). With each passing year, compliance will become more rigorous, and the value per REC is predicted to increase. 

What if I need the RECs for my business? 

If you need the credits for compliance with state or federal regulations, you may exit the agreement without penalty. Upon providing us notice, we ask only for up to 12 months to unwind any buyers we’ve lined up for your credits. 

Will the RECs go up/down in price? 

It is difficult to say in which direction the credit price will go since the market is based on supply and demand. More solar and other LCFS-compliant “fuels” mean more supply, lowering the price per REC. But as more drivers adopt the use of electric cars, and as the LCFS places greater emphasis on green energy, there will undoubtedly be more demand, leading to price increases. Though there are no guarantees, we remain hopeful credit prices will increase, providing greater returns for our customers. 

Can I procure RECs myself? 

Yes, but the process of registering and finding buyers for the credits can be cumbersome for a single project. We find that counterparties want greater scale generally, which makes it likely they’d get either a reduced rate per REC or need to work with a broker who’d take a hefty cut for the transaction. Moreover, the process of compliance is rigorous, so staying compliant with the program’s governing parties can be challenging. Our suggested alternative is to let us handle the headache and seek out rates on your behalf per REC that would most likely be unattainable were you to take this on yourself.  

How Coldwell Energy Helps 

Coldwell Energy maintains relationships with an extensive portfolio of clients. Entities in need of LCFS compliance help benefit significantly from the diversity of our client portfolio and breadth of experience, limiting hassles associated with the need for multiple transactions. The scale we offer delivers fewer headaches and better “buying power” in the value you earn per REC. 

Next Steps 

Given the presence of both the REC buyers and the need to stay compliant with the LCFS program, there is a lot of documentation associated with managing your credits. We handle it for you, while developing and maintaining your new revenue stream, so you can stay focused on your business. 

1. Contact Coldwell: Coldwell will manage the process of bringing your system into compliance with the LCFS program through the state-mandated tracking system known as WREGIS. 
2. Become LCFS Compliant: Once registered, your solar-powered system will begin accumulating RECs on WREGIS, which will go through a 3-month “minting” period, where the state will ensure your credits are LCFS-compliant. 
3. Sell the Credits: Once the RECs have “minted,” we’ll bring them to our LCFS “credit-hungry” counterparties to see who will give you the best rate. Once we find an agreeable buyer, we will sell the credits. 
4. Get Paid: Coldwell will pay you the generated revenue from your RECs on an annual basis! 

For more information, reach out at www.coldellenergy.com/contact-us.

As 2025 draws to a close, major changes are on the horizon for federal solar tax incentives—and they could dramatically impact your bottom line. If your business is planning a renewable energy project, understanding these deadlines and rules is critical to securing the full 30% Investment Tax Credit (ITC) and avoiding costly compliance pitfalls.  

The Big Picture: FEOC Rules and OBBBA Changes 

Starting January 1, 2026, new Foreign Entity of Concern (FEOC) restrictions take effect. These rules prohibit the use of solar hardware linked to countries such as China, Russia, Iran, and North Korea. At the same time, the One Big Beautiful Bill Act (OBBBA) modifies ITC safe harbor provisions, tightening eligibility for projects that haven’t begun construction by July 4, 2026. 

Why does this matter? Projects that fail to meet these requirements risk losing their entire tax credit—not just a portion—while also facing higher costs and longer lead times for compliant equipment. 

Key Deadlines You Can’t Miss 

Before July 4, 2026 

• Large Solar Projects (>1.5 MW): Must satisfy the Physical Work Test (substantial on-site work) to qualify for ITC. The 5% cost safe harbor ended for these projects after September 2, 2025. 
• Small Solar Projects (≤1.5 MW): Still have flexibility—can use either the 5% cost safe harbor or the Physical Work Test. 
• FEOC Impact: Projects safe-harbored by December 31, 2025, avoid stringent FEOC rules and maintain access to full credits. 

After December 31, 2025 

• New projects face stricter sourcing requirements and FEOC restrictions. 
• Using hardware from prohibited entities could mean losing the entire tax credit.
  

   

Safe Harbor Explained: Your Best Protection 

Safe Harboring locks in your tax credit eligibility and shields your project from future FEOC restrictions. It’s been part of the ITC framework for years and gives you up to four years to complete installation if done before July 5th, 2026. 

Two IRS-approved methods: 

1. Physical Work Test: Begin substantial construction and maintain continuous progress.
2. 5% Cost Test: Pay or incur at least 5% of total project costs before the deadline. For smaller projects, this is the most practical option.

    

Real-World Example: Cold Storage Facility Secures Big Wins 

One cold storage company customer of ours took proactive steps in late 2025 to meet the safe harbor requirements for their planned solar installation in 2026. By locking in their eligibility before the FEOC rules take effect, they secured the full 30% Investment Tax Credit – a savings worth hundreds of thousands of dollars on a multi-megawatt system. For a business with energy-intensive refrigeration needs, this move doesn’t just reduce upfront costs; it delivers long-term operational savings by offsetting high electricity demand with on-site renewable generation. In an industry where power costs can make or break margins, this strategic decision positions them for both financial stability and sustainability leadership. 

Why Acting Now Matters 

Waiting until 2026 could mean: 

• Losing eligibility for the 30% ITC. 

• Paying more for FEOC-compliant hardware as supply tightens. 

• Facing installation delays due to equipment shortages and utility backlogs. 

By safe-harboring in 2025, your project is protected until the end of 2029. If you wait until 2026, you extend to 2030—but by then, FEOC rules will already be in force. 

Next Steps for Commercial Customers 

• Accelerate Construction: Start substantial physical work or secure safe harbor before July 4, 2026. 

• Audit Supply Chains: Ensure all components meet FEOC compliance for projects starting in 2026 and beyond. 

• Document Everything: Maintain clear records to prove “beginning of construction” to the IRS. 

Contact Coldwell Energy today to start your safe harbor process and secure your project’s financial advantage at www.coldwellenergy.com/contact-us. 

California’s new mandatory climate disclosure laws – SB 253 & 261- create a fundamentally different value proposition for corporate renewable energy investments as we know them in 2025. Unlike traditional carbon pricing mechanisms, these laws impose disclosure requirements rather than emissions penalties, shifting the strategic value of projects like on-site commercial solar from regulatory cost avoidance to competitive positioning and environmental, social, and governance (ESG) performance. 

Here’s a breakdown of what’s involved in those SBs today: 

The REC Ownership Dilemma 

With the passage of California Senate Bills 253 and 261, companies operating in the state are now facing a pivotal decision regarding the treatment of renewable energy credits (RECs) generated from their solar investments. These laws require large businesses to disclose their greenhouse gas emissions and climate-related financial risks, making the handling of RECs a matter of both financial and regulatory significance. 

Option 1: Sell RECs for Revenue ($22,000 annually) 

One option available to companies is to sell their RECs, which can generate approximately $22,000 in annual revenue. This approach provides immediate cash flow benefits but comes at a cost. By selling the RECs, companies relinquish ownership of the environmental attributes associated with their solar energy production. As a result, they cannot claim the use of renewable energy or the associated emissions reductions in their climate disclosures. Under SB 253, this means they must report their Scope 2 emissions as if they were purchasing electricity from the grid, potentially inflating their reported carbon footprint. 

Option 2: Retain RECs for ESG Benefits 

Alternatively, companies may choose to retain their RECs to support their environmental, social, and governance (ESG) goals. While this means forgoing the $22,000 in annual revenue, it allows them to maintain ownership of the environmental benefits tied to their solar generation. This decision enables them to claim renewable energy use in their mandatory climate disclosures and report zero Scope 2 emissions for the electricity produced by their solar systems. Retaining RECs also signals a stronger, more authentic commitment to sustainability, distinguishing the company from others that rely on purchased offsets. 

Ultimately, the choice between selling or retaining RECs has become more than a financial calculation—it is now a strategic decision that reflects a company’s broader climate positioning and compliance with California’s evolving regulatory landscape. 

Traditional Financial Returns 

Investing in solar energy offers compelling traditional financial returns. For a 1 MW solar installation generating approximately 2.2 GWh annually, companies can avoid around $350,000 in electricity costs each year. Additionally, if the RECs generated by the system are sold at the current California market rate of $10 per MWh (as of July 2025), this can yield an extra $22,000 in annual revenue. However, it’s important to note that selling RECs means forfeiting the environmental attributes associated with solar energy, which can impact climate reporting. Altogether, if a company chooses to monetize its RECs, the total direct financial value of the solar investment can reach, for example, $372,000 annually. 

Competitive Positioning 

Beyond direct financial gains, solar investments can significantly enhance a company’s competitive positioning. By retaining RECs and accurately reporting renewable energy use, businesses can present a more favorable emissions profile in mandatory public disclosures, such as those required under SB 253 & 261. This transparency not only strengthens stakeholder trust but also signals a genuine commitment to emissions reduction, as opposed to reliance on purchased offsets. Furthermore, companies that demonstrate strong environmental performance often benefit from improved ESG ratings, which can attract sustainability-focused investors and open doors to green financing opportunities. 

Risk Mitigation 

Solar investments also serve as a strategic tool for risk mitigation in an evolving regulatory and market landscape. By maintaining a low emissions profile and retaining RECs, companies are better positioned to adapt to potential future carbon pricing mechanisms, which could impose costs on high emitters. Additionally, as supply chains increasingly prioritize sustainability, businesses with verifiable emissions reductions may become preferred vendors for partners tracking Scope 3 emissions. Finally, proactive climate action helps protect corporate reputation, reducing the risk of negative publicity or stakeholder backlash stemming from high emissions disclosures or perceived greenwashing. 

The Penalty Misconception 

Many executives assume California’s climate laws work like cap-and-trade systems with direct financial penalties for high emissions. This creates an expectation that emissions reductions have quantifiable regulatory value.  

In reality, California’s approach is disclosure-based, not penalty-based. There are no No direct financial costs per ton of CO2 emitted. Penalties only apply to reporting failures, not emission levels. The “cost” of high emissions is reputational and competitive, not regulatory. 

Strategic Recommendations 

Coldwell Energy’s energy experts have more than 150 years of combined experience with California energy policy across more 580MW of installed projects – including many customers benefiting from REC’s. Here are our main recommendations: 

For Companies Subject to Disclosure Requirements

1. Prioritize actual emissions reductions over offset purchases for better disclosure profiles

2. Invest in on-site generation to demonstrate genuine sustainability commitment

3. Prepare for public scrutiny of emissions data starting 2026

4. Consider competitive implications of emissions disclosure in your industry 

For Solar Project Evaluation

1. Expand ROI calculations beyond direct financial returns to include ESG positioning

2. Quantify disclosure benefits in terms of stakeholder value and competitive advantage

3. Plan for scaling as emissions disclosure becomes industry standard

4. Document additionality to differentiate from offset-based strategies 

Participating in California’s Cap-and-Trade Program 

California operates comprehensive carbon market databases including the Compliance Instrument Tracking System Service (CITSS) for all registered entities and the Berkeley Carbon Trading Project Database that tracks offset projects and credit transactions. While on-site solar cannot generate direct Cap-and-Trade offset revenue, it remains valuable for emissions reduction and regulatory positioning under the disclosure laws. Here are the direct and indirect ways solar projects are eligible to participate: 

Direct Offset Participation: Solar projects do not qualify for compliance offset credits under California’s Cap-and-Trade program. The six approved offset protocols are limited today to:

1. 1. 1. Ozone depleting substances
      2. Livestock anaerobic digesters
      3. U.S. forestry
      4. Urban forest
      5. Mine methane capture
      6. Rice cultivation 

Indirect Integration: Otherwise, commercial solar projects support Cap-and-Trade objectives by:

• • • • Reducing demand for fossil fuel electricity that would require allowances
      • Supporting grid decarbonization encouraged by the program
      • Potentially qualifying for the Voluntary Renewable Electricity (VRE) Program  

Shifting to Transparency-based Climate Policies

California’s climate disclosure laws represent a shift from penalty-based to transparency-based climate policy. While there are no direct financial penalties for high emissions, mandatory public disclosure creates powerful incentives for genuine emissions reduction. For corporate solar projects, this transforms the value proposition from regulatory compliance to strategic competitive advantage, making the business case for renewable energy investments more compelling even without traditional carbon pricing mechanisms. 

The real “penalty” for high Scope 2 emissions isn’t a fine. It’s actually having to publicly report poor environmental performance while competitors demonstrate superior sustainability metrics. In this context, on-site solar generation becomes not just an operational cost-saver, but a strategic asset for corporate positioning in an increasingly transparent climate disclosure environment. 

Overall, solar projects create a strategic choice – companies can either monetize RECs for $22,000 annually OR retain environmental attributes for superior climate disclosure reporting. Under California’s mandatory transparency regime starting in 2026, the ESG value of retaining RECs and demonstrating actual emissions reductions may outweigh the immediate financial benefit of selling them. Companies that sell their RECs cannot claim the environmental benefits in their mandatory climate reports. 

Learn more by contacting info@coldwellenergy.com. 

Sources: 
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB253 
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB261  

If your commercial, industrial, or agricultural operation spans multiple utility meters, you may be leaving money on the table by not taking advantage of meter aggregation. This powerful tool – available through California utilities like PG&E and SCE – allows you to apply solar energy credits across multiple meters on your property, even if they’re not physically connected to your solar system. 

Here’s what you need to know about how it works, why it matters, and how Coldwell Energy can help you make the most of it. 

What is Meter Aggregation? 

Meter aggregation is a billing arrangement that allows customers to offset electricity usage across multiple meters using a single solar energy system. Under California’s Net Energy Metering Aggregation (NEMA) program, eligible customers can install solar on one part of their property and apply the credits to other meters as long as all meters are on contiguous parcels and under the same ownership. 

This is especially beneficial for: 

• Farms and ranches with multiple irrigation pumps and buildings 

• Wineries with separate meters for production, tasting rooms, and residences 

• Commercial operations with distributed facilities 

How are Solar Credits Allocated? 

When your solar system generates electricity, the utility applies credits to your primary meter first. Any excess credits are then distributed to your aggregated meters based on a pre-approved allocation schedule. 

You can choose how to allocate credits: equally across meters, weighted by usage, or prioritized to certain meters. This flexibility allows you to maximize the value of your solar production. 

Why does Value Vary Across Meters? 

Not all meters are created equal. The value of solar credits depends on: 

• Rate schedules: Some meters may be on higher-cost agricultural or commercial rates. 

• Time-of-use periods: Credits are more valuable when offsetting peak-period usage. 

• Load profiles: Meters with consistent daytime usage benefit more from solar generation. 

Why Work with Coldwell Energy? 

Meter aggregation can be complex, but Coldwell Energy’s energy experts make it simple. Coldwell Energy helps you analyze your usage patterns and rate structures to design an allocation strategy that delivers the greatest financial return.  

Here’s how we help: 

• Expert analysis of your utility bills, rate schedules, and load profiles 

• Custom solar system design to match your energy needs and site layout 

• Strategic credit allocation to maximize savings across all meters 

• Turnkey project management, from permitting and interconnection to operation 

• Ongoing support to monitor performance and adjust allocations if needed 

We’ve helped hundreds of California commercial, industrial, and agricultural businesses across every major utility territory unlock the full value of their solar investment through meter aggregation totaling over $620M in economic impact to customers. 

Ready to Learn More? 

If you have multiple meters and are considering solar, now is the time to explore meter aggregation. Contact Coldwell Energy today to schedule a free consultation and see how much you could save at www.coldwellenergy.com/contact. 

Recent global market and U.S. federal government developments are affecting every industry and sector around the world. How businesses are planning their energy strategy and their plans to implement solar, battery storage, EV charging, and efficient lighting projects are no exception. 

Coldwell Energy’s energy experts are working with our new and existing customers to make sure they’re locked in to receive the best possible pricing, hardware, delivery timelines, and installation timelines. Now is the time to work with us for a clear path forward as we help you navigate these changing market forms so you can avoid potential cost increases and loss of key financial incentives. 

What’s Changing? 

Two major forces are converging to reshape the economics of renewable energy projects: 

1. New Federal Tariffs on Renewable Energy Materials

The U.S. government has announced increased tariffs on steel, aluminum, and other critical renewable energy hardware components. These tariffs are already driving up material costs across the global supply chain. As a result, the price of hardware – including solar equipment and batteries – is expected to rise significantly in the coming months. 

2. Proposed Changes to the Federal Investment Tax Credit (ITC)

The ITC has been one of the most powerful financial incentives for renewable energy adoption in the U.S. However, proposed changes in federal tax policy could reduce or even eliminate this benefit. If your solar, battery storage, EV charging, and/or efficient lighting project isn’t locked in soon, you may miss out on tens or even hundreds of thousands of dollars in tax savings. 

What This Means for You 

If you have a pending project proposal with Coldwell Energy, these developments could: 

• Increase your total project cost 

• Delay your return on investment 

• Reduce or eliminate your eligibility for the full ITC 

The pricing and incentives in your current proposal were based on market conditions that are quickly changing. Taking action now can help you avoid these risks. 

How to Protect Your Investment 

To secure your project’s current pricing and full tax credit eligibility, we recommend the following steps: 

1. Sign Your Project Proposal: This allows us to initiate the safe harbor process, locking in your eligibility for the full ITC.

    

2. Submit Your Initial Payment: This secures your equipment at today’s prices before tariffs drive costs higher.

     

3. Complete Site Documentation and Utility Paperwork: This helps us fast-track your project and avoid permitting delays.

    

4. Finalize Your Project Schedule: This ensures construction begins within the ITC eligibility window. 

Let’s Talk 

Don’t let shifting policies and rising costs derail your energy and sustainability goals. Take action today to secure your savings and energy future. Our energy experts are ready to help you navigate these changes and keep your project on track. To review a project proposal and discuss next steps, contact us via www.coldwellenergy.com/contact.   

by George Arredondo | Director of Customer Experience, Coldwell Energy 

I recently had the privilege of attending Reuters Road Transport USA 2025 in San Diego, a gathering of some of the most forward-thinking leaders in the transportation and logistics industry. As Coldwell Energy’s Customer Experience Director, I was eager to explore how the latest innovations in road freight align with our mission to deliver sustainable, scalable energy solutions – especially in the realm of Commercial EV Charging. 

 A Glimpse into the Future of Freight 

The event was centered around three transformative pillars: Decarbonize, Optimize, and Thrive – all themes that resonated deeply with the conversations I had and the sessions I attended: 

Decarbonization is no longer optional. From battery-electric trucks to hydrogen-powered fleets and renewable gas solutions, the industry is accelerating toward a zero-emissions future. We’re seeing that already in the I-10 corridor which will require solar PV infrastructure to support widespread EV charging stations. 

Optimization through AI, telematics, and route planning is revolutionizing fleet efficiency which cut costs by up to 30% while reducing emissions. Systemic planning will take expertise across, for example, solar-powered charging depots, microgrid support, and utility interconnections. 

Thriving in this new era means embracing innovation not just for compliance, but for competitive advantage. This is very evident in the many public-private partnerships that are becoming the cornerstone for progress in electrifying transportation. 

What This Means for Coldwell Energy 

At Coldwell Energy, we’ve long believed that clean energy and commercial transportation are on a collision course… in the best way possible. Our EV charging – coupled with our solar and battery storage – services are designed to meet the evolving needs of fleet operators who are either transitioning to or expanding capacity for electric vehicles. 

Here’s how our offerings align with the trends I saw at the expo: 

Scalable Infrastructure: As fleets electrify, the demand for high-capacity, reliable charging infrastructure is skyrocketing. Our turnkey EV charging stations are built to scale with your operations. 

Energy Storage Integration: With the grid under increasing pressure, our battery storage systems ensure energy reliability and cost savings by storing power during off-peak hours and deploying it when needed. 

Sustainability Meets ROI: Just like the expo’s “Monetize” theme, we help clients reduce operational costs while meeting sustainability goals, turning clean energy into a strategic asset. 

What struck me most at Road Transport USA was the shared sense of urgency and optimism. Fleet managers, tech innovators, and energy providers are no longer asking if the transition will happen, they’re asking how fast and how smartly they can make it. 

At Coldwell Energy, we’re proud to be part of that answer. Whether you’re a logistics company electrifying your fleet, a warehouse manager looking to power more electric forklifts, or a municipality planning more public EV charging, we’re here to help you charge ahead—literally and figuratively. 

If you’re ready to explore how our EV charging services can power your transportation goals, let’s connect! Visit www.coldwellenergy.com/contact.